British Columbia's liquefied natural gas export industry could support a permanent workforce of 75,000 workers including gas-field drillers, plant operators and support industries, according to a new report from the provincial government's Natural Gas Workforce Strategy Committee.Brennan Linsley
/ AP

British Columbia's liquefied natural gas export industry could support a permanent workforce of 75,000 workers including gas-field drillers, plant operators and support industries, according to a new report from the provincial government's Natural Gas Workforce Strategy Committee.Antonov, AFP, Getty Images Files
/ Vancouver Sun

Before B.C. builds an export-oriented liquid natural gas industry with facilities similar to this Canaport LNG terminal near Saint John, N.B., steps need to be taken to deal with royalties paid by vertically integrated companies.

Related

VANCOUVER — In its latest bid to demonstrate the potential scale of its nascent liquefied natural gas industry, the province has unveiled a scenario that shows the sector could support a permanent workforce of 75,000, which British Columbia’s northern regions couldn’t hope to fill on their own.

It is the first full-scale estimate of potential employment in the sector, on the assumption that five LNG export plants would be built on B.C.’s coast by 2021. The numbers were compiled as part of the work of the B.C. Natural Gas Workforce Strategy Committee, whose report was released Tuesday.

On top of that, the construction phase under this scenario would require a workforce of 60,000 during its peak in 2016/17.

“Frankly, the numbers are not surprising to us; they are very large, though,” said Shirley Bond, Minister of Jobs, Tourism and Skills Training, in a scrum outside the legislature following question period.

She added that the estimates come from the industry itself, and the province’s priority is “to have British Columbians have these jobs first.”

To that end, the report indicates the next immediate steps should be to address barriers to employment for possible workers and to develop information, standards and tools as a foundation for implementing training programs.

The report was released on the same day Finance Minister Mike de Jong tabled provincial financial statements that showed B.C. ran a $1.15 billion deficit in 2012, $178-million above the forecast.

Geoff Stevens, independent chairman of the committee, said that the job-creation numbers are consistent with the experience that Australia has had with the construction of its burgeoning LNG industry.

Stevens said he had a chance to visit Curtis Island off the coast of Queensland where three LNG plants are under construction, and the lesson there is that “the further you can get ahead of the curve, the better off you are,” in terms of developing a workforce.

Stevens added that the particular demand will be for skilled trades workers, which will require B.C. to not only train new workers in the region, but draw them from other parts of the province and across Canada.

“I think realistically, there will be some requirement to look offshore, as Australia is currently doing,” Stevens said.

However, given that of the four major proponents doing preliminary work on proposals for LNG plants in B.C. none has made a final decision to build, the political opposition in Victoria views today’s report as speculative.

“We’re not certain we’re going to get a single plant, let alone three, four or five,” Robin Austin, the NDP critic on the natural-gas development file and MLA for Skeena, said. “So I think 60,000 jobs seems to be like a high projection.”

Austin added that B.C. is having difficulties now trying to fill skills gaps with projects already underway, such as the rebuilding of Rio Tinto Alcan’s aluminum smelter in Kitimat and construction of the BC Hydro Northwest Transmission Line.

“We’re bringing in temporary foreign workers for the Alcan build,” Austin said, “And I can see the same thing happening with LNG, where government talks about strategy, but doesn’t actually engage on the ground in terms of getting training going.”

Since then, Stevens said Exxon Mobil has expressed interest in a potential development.

“This assumes that five plants would proceed,” Stevens said.

The report notes that in 2012, B.C.’s natural gas sector employed 13,235 people — mostly in services to the sector — but the numbers are expected to swell to 61,700 to drill enough gas to fill the LNG-production capacity of those five plants, as well as meet B.C.’s domestic needs for natural gas.

Stevens added that B.C. would have to improve its performance in putting candidates through its trades apprenticeship program. He said only about half the candidates who enter the program now complete their apprenticeships. Encouraging more employers to take on apprentices will be part of the solution.

The committee, made up of LNG project proponents, oil-and-gas industry representatives, civil servants and aboriginal leaders, was struck in March of 2012

Premier Christy Clark, on her way to the next Council of the Federation meeting of Canadian premiers at Niagara-on-the Lake, Ont., said she would lead a discussion about B.C.’s need to build a skilled workforce that can meet these expectations.

“To make sure our province seizes the full opportunity of LNG, our first priority is building a strong and skilled B.C. workforce,” Clark said in releasing the report, and called the initiative “a first step toward charting the course for LNG.”

In 2012, B.C.’s natural gas sector employed 13,235 people in three main sectors:

• 8,750 in oil and gas services

• 3,680 in natural gas exploration and production

• 985 in operation of natural gas pipelines.

Assuming five plants are operational by 2021, the industry could support 75,000 workers including:

• 2,400 permanent jobs to operate and maintain LNG plants and pipelines on an ongoing basis

• 61,700 jobs to support LNG operations including drilling, production, transport and services

Comments

We encourage all readers to share their views on our articles and blog posts. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, and please keep your comments relevant and respectful. If you encounter a comment that is abusive, click the "X" in the upper right corner of the comment box to report spam or abuse. We are using Facebook commenting. Visit our FAQ page for more information.

Almost Done!

Postmedia wants to improve your reading experience as well as share the best deals and promotions from our advertisers with you. The information below will be used to optimize the content and make ads across the network more relevant to you. You can always change the information you share with us by editing your profile.

By clicking "Create Account", I hearby grant permission to Postmedia to use my account information to create my account.

I also accept and agree to be bound by Postmedia's Terms and Conditions with respect to my use of the Site and I have read and understand Postmedia's Privacy Statement. I consent to the collection, use, maintenance, and disclosure of my information in accordance with the Postmedia's Privacy Policy.

Postmedia wants to improve your reading experience as well as share the best deals and promotions from our advertisers with you. The information below will be used to optimize the content and make ads across the network more relevant to you. You can always change the information you share with us by editing your profile.

By clicking "Create Account", I hearby grant permission to Postmedia to use my account information to create my account.

I also accept and agree to be bound by Postmedia's Terms and Conditions with respect to my use of the Site and I have read and understand Postmedia's Privacy Statement. I consent to the collection, use, maintenance, and disclosure of my information in accordance with the Postmedia's Privacy Policy.